Table of Contents Strategic Framework 2003 Financial Highlights Operating Company Overviews Great Expectations   Ambience   Service   Attentiveness   Knowledge   Friendliness   Cleanliness Letter To Shareholders Operating Highlights   Red Lobster   Olive Garden   Bahama Breeze   Smokey Bones BBQ New Business Opportunities Financial Review 2003   Management’s Discussion and Analysis...   Report of Management Responsibilities   Independent Auditors’ Report   Consolidated Statements of Earnings   Consolidated Balance Sheets   Consolidated Statements of Changes...   Consolidated Statements of Cash Flows   Notes to Consolidated Financial Statements Corporate Responsibility Board of Directors Corporate Officers Shareholders Information
Consolidated Statements of Earnings   Fiscal Year Ended   (In thousands, except per share data) May 25, 2003 May 26, 2002 May 27, 2001   Sales $ 4,654,971   $ 4,366,911   $ 3,992,419     Costs and expenses:                       Cost of sales:                         Food and beverage   1,449,162     1,384,481     1,302,926         Restaurant labor   1,485,046     1,373,416     1,261,837         Restaurant expenses   700,182     625,710     559,670           Total cost of sales, excluding restaurant           depreciation and amortization of           $177,127, $155,837, and $138,229, respectively $ 3,634,390   $ 3,383,607   $ 3,124,433       Selling, general, and administrative   439,376     420,149     389,240       Depreciation and amortization   191,218     165,829     146,864       Interest, net   42,597     36,585     30,664       Restructuring credit   (358 )    (2,568 )    –           Total costs and expenses $ 4,307,223   $ 4,003,602   $ 3,691,201     Earnings before income taxes   347,748     363,309     301,218     Income taxes   115,488     125,521     104,218     Net earnings   $ 232,260     $ 237,788     $ 197,000     Net earnings per share:                       Basic   $ 1.36   $ 1.36   $ 1.10       Diluted   $ 1.31   $ 1.30   $ 1.06     Average number of common shares outstanding:                       Basic     170,300     174,700     179,600       Diluted     177,400     183,500     185,600   See accompanying notes to consolidated financial statements.